House File 218 - Introduced
HOUSE FILE
BY WINDSCHITL, ALONS, HUSEMAN,
STRUYK, SODERBERG, BAUDLER,
DOLECHECK, WORTHAN, PETTENGILL,
DE BOEF, SANDS, MAY, KAUFMANN,
RAECKER, HELLAND, SWAIM,
ARNOLD, and DRAKE
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act providing for the establishment of an Iowa veterans
2 college loan repayment program.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 1942YH 83
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PAG LIN
1 1 Section 1. NEW SECTION. 261.23A IOWA VETERANS COLLEGE
1 2 LOAN REPAYMENT PROGRAM == FUND.
1 3 1. If the general assembly appropriates moneys for
1 4 purposes of this section, the commission shall establish and
1 5 administer, in consultation with the department of veterans
1 6 affairs, an Iowa veterans college loan repayment program to
1 7 encourage veterans to establish careers in Iowa.
1 8 2. A veteran is eligible for the program if the veteran
1 9 meets all of the following qualifications:
1 10 a. Is a resident of this state at the time of application
1 11 for a payment under this section and was a resident of this
1 12 state for at least three consecutive years immediately prior
1 13 to the time of application.
1 14 b. Applies to the commission in a format determined by the
1 15 commission and submits with the application proof of military
1 16 service, and, where applicable, proof of residency and a
1 17 statement from the United States veterans administration that
1 18 the veteran has exhausted or is not entitled to federal
1 19 military college loan repayment program benefits.
1 20 c. Is employed in this state for wages by an employer.
1 21 3. a. The amount of Iowa veterans college loan repayment
1 22 an applicant may receive shall not exceed the following:
1 23 (1) Eighteen thousand dollars or the remainder of the
1 24 veteran's outstanding college debt, whichever is less, if the
1 25 veteran was a resident of this state for not less than ten
1 26 consecutive years immediately prior to the time of application
1 27 for payment under this section. If the veteran qualified for
1 28 repayment under subparagraphs (2) and (3), the amount of
1 29 repayment the veteran is eligible for under this subparagraph
1 30 (1) shall be reduced by an amount equivalent to the total
1 31 amount received under subparagraphs (2) and (3).
1 32 (2) Eight thousand dollars or the remainder of the
1 33 veteran's outstanding college debt, whichever is less, if the
1 34 veteran was a resident of this state for not less than five
1 35 consecutive years immediately prior to the time of application
2 1 for payment under this section. If the veteran qualified for
2 2 repayment under subparagraph (3), the amount of repayment the
2 3 veteran is eligible for under this subparagraph (2) shall be
2 4 reduced by the amount received under subparagraph (3).
2 5 (3) Three thousand dollars or the remainder of the
2 6 veteran's outstanding college debt, whichever is less, if the
2 7 veteran was a resident of this state for not less than three
2 8 consecutive years immediately prior to the time of application
2 9 for payment under this section.
2 10 4. Eligible loans include the federally guaranteed loans
2 11 under the federal family education loan program or the federal
2 12 direct loan program, and subsidized and unsubsidized Stafford
2 13 loans and consolidated loans, including principal and
2 14 interest.
2 15 5. An Iowa veterans college loan repayment fund is created
2 16 in the state treasury as a separate fund under the control of
2 17 the commission. The fund is created for deposit of moneys
2 18 appropriated to or received by the commission for use under
2 19 the program. Notwithstanding section 8.33, any balance in the
2 20 fund on June 30 of any fiscal year shall not revert to the
2 21 general fund of the state but shall remain in the fund for
2 22 additional loan repayment in accordance with this section.
2 23 Notwithstanding section 12C.7, subsection 2, interest or
2 24 earnings on moneys in the fund shall be credited to the fund.
2 25 6. The commission shall adopt rules pursuant to chapter
2 26 17A to administer this section.
2 27 7. For purposes of this section, "veteran" means a former
2 28 member of the national guard, reserve, or regular component of
2 29 the armed forces of the United States who served at least
2 30 ninety days of active duty service beginning on or after
2 31 September 11, 2001, and who was discharged under honorable
2 32 conditions.
2 33 EXPLANATION
2 34 This bill directs the college student aid commission to
2 35 establish and administer, in consultation with the department
3 1 of veterans affairs, an Iowa veterans college loan repayment
3 2 program to encourage veterans to establish careers in Iowa.
3 3 A veteran is eligible for the program if the veteran is a
3 4 resident, was a resident for not less than three years at the
3 5 time of application, and is employed in Iowa for wages by an
3 6 employer; and has exhausted, or is not entitled to, benefits
3 7 under the federal military college loan repayment program.
3 8 The amount of loan repayment an applicant may receive is
3 9 the lesser of the remainder of the veteran's outstanding
3 10 college debt or $3,000 for a veteran who has lived in the
3 11 state for not less than three years, $8,000 for a veteran who
3 12 has lived in the state for not less than five years, and
3 13 $18,000 for a veteran who has lived in the state for not less
3 14 than 10 years.
3 15 The Iowa veterans college loan repayment fund is created in
3 16 the state treasury under the control of the commission. The
3 17 fund is created for deposit of moneys appropriated to or
3 18 received by the commission for use under the program. Moneys
3 19 in the fund do not revert to the general fund at the end of a
3 20 fiscal year but remain in the fund for additional loan
3 21 repayment under the program. Interest or earnings on moneys
3 22 in the fund are credited to the fund.
3 23 LSB 1942YH 83
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